The number of US workers filing new claims for jobless benefits has surged again, after the bankrupt auto-giant Chrysler began to shut down its 30 plants.Initial claims for state unemployment insurance benefits rose by 32,000 to 637,000 for the week ending May 9, as the US continues to struggle with a recession.
Weekly claims figures had dropped over the past two weeks, spurring hopes that the US economy may be beginning to recover from its 17-month slowdown.
A US Labour Department official said on Thursday "a good part of the increase is due to automotive states and claims".
Chrysler began shutting its 30 manufacturing plants on May 1, a day after filing for bankruptcy.
Economists estimate that Chrysler has laid off 27,000 workers since then.
The firm is to be revamped after it agreed a deal with the Italian vehicle manufacturer, Fiat.
The number of people staying on the benefit rolls after collecting an initial week of aid jumped 202,000 to a record 6.56 million in the week ended May 2, the Labor Department said.
That was the largest weekly increase since late November and the 15th straight week that "continued" claims reached a record high.
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